Mortgage Rates Not Getting Better After Fed QE2 Announcement

After Fed announced to add more treasuries to its balance sheet with $600B more over the next six months, the mortgage rates did not drop as many hoped.

Instead, mortgage rates over the past few days showed signs of trending up. From time to time, I have seen borrowers taking a big risk just for the rate to go down by 0.125%.  For a loan amount of 400K, that 0.125% only translates to monthly saving of $30 dollars.  

When it comes to lock the rate, ask yourself  how much your savings will be if you lock the rate now. If the savings is already significant enough, lock it now. It does not worth to risk already significant savings to wait for just another 0.125% drop in rate. Remember you can always refinance again in a few months if rates drop further again.

If you would like to discuss further on your refinance or getting a mortgage for buying a house, please feel free to email me or call me.

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